The Only Link in the Value Chain Where Accountants Are

question 5

True/False

The only link in the value chain where accountants are of any importance is the production stage.

Analyze the impact of inventory valuation choices on financial ratios and business decisions.

Understand the accounting treatment for merchandise returns and allowances.

Distinguish between perpetual and periodic inventory systems and their respective accounting transactions.

Recognize the impact of purchase discounts, sales discounts, and credit card sales on financial statements.

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Definitions:

Engineering Change Notice

A document used in engineering and manufacturing that outlines modifications to a product's design or manufacturing process.

BOM

Bill of Materials; a comprehensive list detailing the materials, parts, and components needed to manufacture a product.

Bill Of Material

A comprehensive list detailing all materials, parts, and assemblies required to manufacture a product.

Material Requirements Planning

A computer-based inventory management system used to manage manufacturing processes by determining material requirements and scheduling production.